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Chicago Workers Protest After Duraco Files Chapter 7 Bankruptcy

Protests have broken out at the closed Duraco Products Plant near Chicago as workers demand to be paid wages for work already completed.

Duraco Products declared Chapter 11 bankruptcy in 2008 after the plastic injection molding company faced serious financial difficulties. The company’s factory is located in Streamwood, where roughly 20 workers manufactured planters and birdfeeders for the business. Now the company has been ordered by the US Bankruptcy Court to go into Chapter 7 bankruptcy following a rough two-year financial struggle.

When Duraco originally filed for Chapter 11 bankruptcy, the company listed its assets at around $50,000 and its liabilities at between $1 million and $10 million. While Chapter 11 reorganization bankruptcy allows companies to continue to function, Chapter 7 liquidation bankruptcy usually involves closing a building and selling its assets in order to pay its debts – Duraco has closed its doors.

Community organization Chicago Workers' Collaborative says that the non-union workers who are protesting are owed an estimated $150,000. Many of them had been working without pay for many months and some have lost savings, cars, and even houses while waiting for the fortune of the company to improve.

It is unclear how and if the workers will receive their lost wages, though many are planning to file lawsuits against the owners and to file claims with the bankruptcy court.

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